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Space-time analysis of GDP disparities among European regions: A Markov chains approach

Julie Le Gallo ()

No 2001-06, LATEC - Document de travail - Economie (1991-2003) from LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne

Abstract: The purpose of this paper is to study the evolution of the disparities between 138 European regions over the 1980-1995 period. We characterize the regional per capita GDP cross-sectional distribution by means of nonparametric estimations of density functions and we model the growth process as a first-order stationary Markov chain. Spatial effects are then introduced within the Markov chain framework using regional conditioning and spatial Markov chains. The results of the analysis indicate the persistence of regional disparities, a progressive bias toward a poverty trap and the importance of geography to explain growth and convergence processes.

Keywords: convergence; regional disparities; spatial autocorrelation; spatial Markov chains (search for similar items in EconPapers)
JEL-codes: C14 C52 R11 R15 (search for similar items in EconPapers)
Date: 2001-03
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Journal Article: Space-Time Analysis of GDP Disparities among European Regions: A Markov Chains Approach (2004) Downloads
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